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The company has more than 1,200 brick and mortar stores under three brands – Gymboree, Crazy 8 and Janie and Jack. The clothing retailer announced an agreement had already been reached with lenders that allow the company to stay in business while it restructures the business.

Gymboree reported a $324 million loss in the three-month period that ended in January. It was recently included in a list of 19 struggling retailers by credit rating firm Moody’s.

The company employed about 12,000 people as of last summer.

The company also announced its CFO was stepping down for personal reasons, but would stay on as a consultant. In January, the CEO stepped down. A replacement CEO was named in May.